Abstract: Among the sectors that have been identified as vital to the economy in Kenya is the manufacturing sector. Its contribution nevertheless, is contingent on their performance financially. The study sought to establish the effect of working capital management on financial performance of manufacturing firms listed at the Nairobi Securities Exchange, Kenya. The target population of the study was eight manufacturing firms that are listed at the Nairobi Securities Exchange, Kenya. A census approach was used within the time scope of 2013-2017. The data analysis was based on panel regression analysis. The study established that debtors’ management and cash management had significant effect on Financial Performance of Manufacturing Firms Listed at the Nairobi Securities Exchange, Kenya. The study concluded that creditors’ management and inventory management had insignificant effect on financial performance of manufacturing firms Listed at the Nairobi Securities Exchange, Kenya. Lastly, the study concluded that gross domestic product had insignificant moderating effect on the relationship between working capital management and financial performance of manufacturing firms Listed at the Nairobi Securities Exchange, Kenya. The study recommends that ensure that that firm management should put in place measures that will ensure the efficient and effective management of the cash related issues of the firm.
Keywords: Debtors Management, Creditors Management, Inventory Management, Cash Management, Gross Domestic Product and Financial Performance.
Title: WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE, KENYA
Author: FAITH MARTHA MUSEMBI, GERALD ATHERU
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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